Good prospects for our exports in other markets

Press, 17 July 1979, Page 21

Good prospects for our exports in other markets

Bv

STUART M.

Australia took 43 per ent of New Zealand’s xports of manufactured 'oods last year, amounting in value to 5239.7 M, and can be expected to be the major market for manufactured goods for many years to come. The increase was 4.5 per cent on 1977. But if manufacturers are looking for markets further afield that have a potential for considerable growth, a number of other countries deserve attention.

Probably the top of the list is the west coast of the United States. During 1978 New Zealand sold 43.6 per cent more manufactured goods there than in 1977. The total sales amounted to $43. IM.

One of the problems is scale. American wholesalers might place an order for more than the total output of a New Zealand factory. The market is highly specialised, however, and the possibilities are immense. One of the closest and fastest growing markets is Papua New Guinea. Total sales by New Zealand to

Papua New Guinea last year were 523.2 M, 71 per cent of them manufactured goods. The sales were 51 per cent up on the previous year. The vigorous economy of South Korea, developing at more than 10 per cent a year, makes it a market to be considered important. It brought a total of SG7.6M from New Zealand last year, which was 54 per cent up on 1977. The major items however were meat (S24M), tallow ($10M), hides and skins (S7M), forest products! (S10M). and wool (S7M). Exports of manufactured goods can be expected to increase. China probably ranks fourth among the potential growth markets. Some uncertainties exist because China has been reassessing its development priorities. Should its tourist development continue — and that seems likely — there should be excellent chances for sales of electrical equipment, wallboards, and carpets among other goods.

Singapore and Malaysia have had good growth rates and offer sound prospects. It may be necessary to consider joint ventures for the Malaysian market. The establishment and operation of the BahrainNew Zealand joint venture facility on Bahiain, 8.A.N.Z., in the Golf might provide the opportunity for New Zealand to improve its sales of 55.2 M worth of manufactured goods to the Middle East in 1978. A New Zealand trade mission will shortly tour some South American countries, Fletchers and A.H.1., but no South Island manufacturers, are included in the team. New Zealand horticulture would appear to have good prospects in several areas of the world, including the European Economic Community. Overall the value of New Zealand exports of manufactured goods increased by 16 per cent last year compared with 1977. The total value, excluding forest products, was 5582.4 M.